Silver prices closed at $25.55 per troy ounce today at the end of the trading secession. Although the U.S. government has printed an unprecedented amount of money over the past year, the price of silver has not surpassed its all time high. The question to ask; why is silver undervalued? Why is the price of silver still under 50$ per ounce? Is now the time to buy physical silver bullion coins? Silver investors remain puzzled by the fact that silver prices are not higher today. On the other hand, investors are watching the equity and housing markets boom in price. Furthermore, inflation is clearly present in everyday food prices, gas prices, and consumer goods. Have you been to the grocery store lately? If so, it is impossible to notice that everything you need to by is just a little bit more expensive.
Why have silver prices not risen in price like other assets?
This is the trillion dollar question. Why is silver undervalued? To understand this question it is important to understand the industrial component of silver. Silver is perhaps the most important industrial commodity today. Silver is the best conductor of electricity in the world. All modern day necessities such as: electronics, smart phones, electric cars, alliances, computers, etc. are not possible without silver. The recent pandemic disrupted the supply and demand fundamentals of global silver production. The silver institute indicates that global mine production fell 5% in 2020. On the other side, industrial silver demand also fell by 7% in 2020. This may be one reason why silver prices remain suppressed. It is truth that investment demand rose over 10% in 2020, however, the size of industrial demand is far greater than that of investment demand. The truth is that it is impossible to be certain why silver prices remain low.
Why should I buy physical silver now?
It is important to recognize an opportunity when it presents itself. Today is that day. Silver is a steal at these prices. It is impossible to know why the silver price is not higher, however, it is possible to buy when you see a gift horse! Call New Orleans Silver and Gold today about buying physical silver coins or bars.
